The amount of capital available for small business continues to decline. Total small business lending has dropped about 8% this year. This is in spite of a new SBA refinance program and a variety of other attempts to stimulate lending.

The last three years have been particularly difficult for small business. Many of those still open have suffered, and that shows up on the financial statements. Our underwriting staff has indicated that less than 50% of all loan applications meet current SBA 504 lending standards. Most buisness do not have the cash flow required to obtain a commercial real estate loan.

The new SBA 504 refinance program has resulted in only 40 loans nationwide since it was announced September of 2010. The lending standards are obviously too tight to provide financing for those who need it. Without financing these business cannot expand and no expansion means no new jobs. Approximately 2/3 of all new jobs are created by small and medium size business. If these job creating business are having trouble expanding due to tight credit it is now wonder our jobless rate continues to climb.